What Do European Credit Markets Know That Stocks Don't?

Draghi jawboned Zee Germans and rumors of another 'path to fiscal union' were enough to provide equity markets with some ammo to buy-the-dip following the ECB/Buba news that they were lawyering up over the legality of the OMT (and IMF doubting Greece's ability to fund). Rapidly, the high-beta 'options' on Europe - i.e. IBEX, ripped and that dragged stocks into the green across Europe. BUT - while EURUSD also improved (which provided US equity traders with their pre-European-close methadone), European sovereign spreads did not follow the same path of exuberance, Greek bonds tumbled off highs, and European corporate and financial credit spreads cracked wider and kept going in the biggest divergence since Draghi's Dream speech. It seems that post the CDS roll, positioning is becoming a little more nuanced and for sure - credit markets are not buying it...